Business Formulas

Question 1

Markup Percentage

Answer 1

Markup Percentage = Gross Profit/Initial Cost x 100

Initial Cost: $10
Markup: 3x
Listed Price: $30
Gross Profit: $20
$20/$10 x 100 = 200% Markup

Question 2

COGS

Answer 2

COGS = Starting Inventory Value + Cost of Goods Purchased – Ending Inventory Value

Question 3

%COGS

Answer 3

%COGS= Cost/Sale Price

Question 4

Profit Margin Percentage

Answer 4

Profit Margin Percentage = Gross Profit/Total Revenue x 100

Initial Cost: $10
Listed Price (Total Revenue): $30
Gross Profit: $20
$20/$30 x 100 = 66.6%

Question 5

Pricing

Answer 5

Price=Cost/(1-(profit margin/100)